is absolutely depleting the rental stock in san francisco and with these the store term rentals there will be less people voting in my district, as they will not be inclined to register while they are waiting for permanent lodging. they are forgeting about local folks who already live here in favor of attracting those who are moving here and giving them short-term while they wait to rent or boy many of the condos that are not even affordable to many san franciscans. a young couple could always start in a cheap apartment in the tenderloin. not so any longer. show me a second or third generation san francisco who is interested in a finished $1900 studio apartment? native san franciscans are being priced out of the city in favor of transplants. yes, 32 years ago i was a transplant, but not this kind of transplant. i was a low to mid-income wage earner. thank you. t-good afternoon, supervisor. my name is brook turner with

the coalition for better housing. first, may i begin by thanking supervisor chiu and his staff amy chen for working so hard to try to figure out a way to do this that didn't hurt the rental property owners or the corporate suites companies that would actually be obeying the law already. our concern of course was there would be the industry of a drive-by or nuisance lawsuits for trying to get settlements and those kinds of things. we certainly do not condone, nor appreciate other property owners in corporate housing folks who do not obey this law. it's been a law for a long time and they should know better. i think this legislation and the debate that has gone up around it has gone a long way to addressing those issues and i think this legislation will

help and it won't provide a problem for rental property owners and others who go ahead and obey the law and keep records as they should, about how long their tenants have been there. thank you, supervisors. i'm happy to say that we can support this legislation as it's currently written. thank you. >> thank you the coalition for better housing, as well as the apartment association. i know you had some real issues and concerns when we first started the conversation, but to your point, what we have found in our examination of this issue is that are good actors in the industry, but there are certainly bad actors in industry that have led to, i think, a number of the concerns and facts that we have heard today. and i think the work that we did together around ensuring an administrative review process before the legal resource that could involve the assistance of non-profit organizations that will go a long way to insure

that dbi is working with tenants to go after folks not doing the right thing. so i appreciate the work you did with our office. >> thank you, it's been a pleasure. >> good afternoon, supervisors. i am bill hanon, president of the golden gateway tenants association. our members live at the gateway, known as the golden gateway center a residential complex of 1254 residential units near the embarcadero. i have live there had since 1989. for many years i have heard complaints from neighbors about hotelization. we believe more than 10% of the units at the gateway are currently rented to residents to companies including bay city suites and marriott exu stay owho could possibly make those units a[srao-ubl/] available

short-term use hotelization. some have teams of maids and large carts that fill up elevators to clean multiple apartments at same time. the overall effect is a revolving door at pher, like a hotel that undercuts any sense of community we may have. on public police officer grounds rentyas to tourists or transients [-efblt/]ively remove apartments from rent control, which should be broadly available to long-term residents. and this loophole in legal application allowing these short-term rentals decreases the supply of affordable housing in san francisco. we enthusiastically support supervisor david chiu's proposed legislation and thank him and his staff, including amy chen for their fine work. thank you for your attention. >> thank you, mr. hanon, i want

to state on the record the statistic is 15% of the golden gateway units that have been rented by corporate entities and thank you your leadership that initially brought this to my attention. as we have discovered this is an issue that has been plaguing [ta-ept/]s in apartment buildings in a number of areas around the city. thank you for your help. >> next speaker. >> good afternoon. we're from the same apartment building. thank you, supervisor chiu, we have been following -- mary long, lanai backet. we have been talking to amy chen about this legislation and we're happy with the legislation except we feel there is a little bit of a hole that doesn't solve the problem that we have experienced, which is that we live in an apartment building that was mixed income, mixed ages, mixed household type and everything. an old building on nob hill.

and they managed to empty half of the apartments to start a new business, which was this suites business, the first brand as city suites and late on when the building went into receivership, the receiver started another business, an urban suites collection, which mr. hammond from the golden gateway was talking about the hotelization and that is what has gone on with half the units in the building. we have half regular tenants and half corporate suites. those apartments -- as along as this business model is profitable for these owners, those apartments will never be available to regular middle-class renters to live in the neighborhood that we really enjoy living in. so that is our problem. >> lana backet. i think there is a way of correcting this and we would

like to talk with your office about an amendment that would define "corporate suites." make it illegal for them to be in buildings occupied by permanent residents for more than 30 days, less than 90 days. or that they don't offer a year lease. so we would love to continue this dialogue with your office. and that is what we have to say. thank you. >> thank you very much and i hope that the department of building inspection knows exactly what site you are referring to in case there is any work that can be done now. thank you very much. next speaker. >> good afternoon. my name is joe and i'm a resident of the golden gateway. i have live there had for 18 years. when i first started my tenancy

in july of 1995, i quickly made contact with existing tenants and formed friendships with them. some of them have lasted to this day, even though some of those tenants are have moved out and then i noticed that certain parents on my floor, the 14th floor, where there are 20 apartments, didn't house them and learned that they were rented to corporation for their overflow tenants. it changes the atmosphere considerably, if you rent an apartment or even if you buy a home, you want tenants that you can associate with, and this hotelization makes you feel

like you are in a hotel, not in a home. a second point i would briefly make is that the hotelization program seems to subvert capitalism. if an owner of an apartment house who has several vacancies, the inclination is that he will raise rents, but with hotelization, chances are that the apartment house will always be filled and there will be no motivation by the owner to lower rents and to the detriment of potential low-income tenants. thank you very much. >> thank you very much. next speaker. >> good afternoon, supervisors. my name is angelicaya with the

action network. first i would like to thank supervisor chiu for his leadership on this legislation. since the heavy focus of the revitalization of central market, some of our allies today have been vocal by needing to ensure that we prevent displacement to the residents, non-profits and businesss in the south of market. so this legislation we have been waiting on to make sure it comes through, because we want to make sure that existing rent control buildings are protected. we were part of the fight for trinity plaza, which is over 300 rent-controlled units in san francisco. and we were able to be successful in protecting that. so we want to ensure that other rent-controlled units in san francisco are protected as we all know the housing crisis is increasing in san francisco. there is a lot of small displacement that has been

happening, not only south of market, but tenderloin with rents increasing. therefore, we want to make sure that the corporations don't take away the small existing rent-control that we already have, and because we need to address the exiting [sk-eufrt/]ing housing crisis for families. we urge you it please pass this and we hope that will you pass it at the full board of supervisors thank you. >> thank you for your support of this. >> it sounds like it's uncontested that we want to have good compliance that we're making sure there are good actors and that is a good step. so we're very supportive of that idea and it's good to hear that folks in the industry, so to speak, agree that that is a

good practice. of course there is a larger discussion had a we look forward to continuing to participate in, which is how do we use our limited supply or existing housing? there is a lot of competing demands that comes up routinely with rental stock and converting it for perhaps corporate suites or vacationers or condominiums, whatever it might about be. it's very difficult and it's important that we talk it through and determine where the lines need to be. we're continuing to face this vexing issue in san francisco. we have too little housing supply stock to service all of the competing demands for that stock. of course our bias is it that should first and foremost be for residents who live here and stay here, but recognizing there are these other needs to service and having a conversation carefully about how to do that is something that we also support as next step. thanks. >> thank you.

next speaker. >> good afternoon, members of board of supervisors, my name is fernando with the council of community housing organizations. first of all i want to thank supervisor chiu for bringing this legislation before us that protects existing rental stock and for supervisor wiener for having protected stock around student housing [r-ebts/]als. as peter said before this particular issue alludes to some of the larger issues around rental stock in san francisco. like most big cities it's citadel that we preserve our rental stock and protect it from being cannibalized for other uses. there is a market for hotels, corporate suites and condominiums and other uses and the answer is through an efficient production strategy that expands choices and notice through diminishing our rental stock. thank you supervisors for bringing this forward and preserving our rental stock. >> thank you.

>> good afternoon, supervisors. jane, san francisco apartment association and i'm here to speak on behalf of the rental industry and the corporate housing providers. thank you supervisor chiu for opening your doors and taking our input in this participate piece of legislation. what i have discovered in working on this policy is that most of the people that i represent do not rent for less than 30 days and, in fact, they don't rent for less than 90 days. although i would like you to all take into consideration that providing 90-day/six-month housing is important in our city for people coming in, for cancer treatment at ucsf, children coming here for california pacific medical center and also other corporations that we're trying to encourage here in san francisco. i have a brief list of people that utilize the corporate housing services that i can read. and they are certainly not a

list of bad guys. i think that sometime because of the travel website business now, the short-term rental on the corporate side and the travel website business get confused with hotels. and i think that that is a policy issue that we would like to work with the board of supervisors on, going forward, because it certainly is not serving the rental housing community well either on owner's sid or the tenant's side. there are a large group of people profiting off of this, but i don't think necessarily the tenants and owners are the ones doing it. i think dbi and the housing department is the good place to resolve. this. so just a couple of entitis that we found in

facebook, electronic art, apple, visa, johnson & johnson, google, twitter, yelp, [stko*-eupbg/]a, gap, levi strauss, lucas film, advent software, sales force, san francisco opera, [kao*-eurbgsz/] transplant and recovery, also the california pacific medical center relocation consulting cancer treatment transplant and recovery. so as you can see, sometimes corporate housing is a necessity in san francisco when it provides a service to families trying to access affordable health care in our great city. thank you supervisor chiu, wiener, mar and cohen. >> thank you very much and i want to clarify for folks who are listening obviously that there are needs for individuals that live in our city in a less than permanent basis and what we're trying to get at is short-term use under 30 days

particularly by corporations that are allowing folks to use units for the weekend, for a week, for very short-term basis that we refer to as corporate hotelization. next speaker, please. >> good afternoon, supervisors. my name is noni, although i am active in landlord issues i'm representing only myself today today's a small property owner. i own one unit and one recently became vacant and my family is moving in, my children, but i would be very hard-pressed to re-rent it. i don't plan to be a hotel keeper, but after reading this morning's paper, i just felt compelled to be done here. the mayor is making available access by making concessions to developers to build new housing. there are thousands of units that could be utilized for rental housing in this city.

and i think if you would loosen some of thesis regulations, so that people would not feel that if they rent to someone for a couple of years, it could turn into a couple of decades and it could cost them $20,000, $30,000 when they are old and need to move in themselves or move their grandmother in what she is old. how about just thinking about making it a little bit easier for owners to re-access their places? you shouldn't have to pay hundreds of thousands of dollars to pay somebody to leave, so that they can avoid having a scarlet a on their title. i don't think most owners really want to be inn keepers. and for myself, it wasn't the low rent that made me so happy to get rid of this person, although it was a non-payment issue. it wasn't the low rent at all.

it was the fact that she was abusing our place and had a permanent hold on it as along as she paid that rent. so think about make something concessions to owners. we're not ogres and not the enemy. maybe we could all just wear yellow arm bands or something like that. i'm really angry about this. >> thank you very much. next speaker. >> good afternoon supervisors. ted with the san francisco tenants union. with corporation suites and other short-term rentals we have lost well over a thousand rental units in san francisco. this is great legislation because it lets us hone in on those corporate rentals, but also gives us a real enforcement proviction that we can deal with the short-term rentals as well. we at the tenants union have

been seeing this lap for a number of websites and we actually did some research on one of them vacation rental by owner, and we were able to identify a number of addresses. and surprising found there were a significant number of buildings which were being used as short-term rentals following ellis act evictions and other evictions. and found that most of the buildings on that site representing out multiple units with about a third of them being entire buildings where all units were being rented. so this has become really epidemic in san francisco and i commend the supervisors for taking the leadership on this. and helping us to end this epidemic. thank you. >> thank you very much. i want to thank you, and the work of the san francisco tenant's union when we were first trying to grapple with how to deal with the issue. you made some very helpful suggestions that really became

the heart of this legislation. so i really appreciate that help. >> good afternoon, supervisors. mitchell, from the affordable housing alliance. just remind we were founded in 1981 the year that the apartment conversion ordinance was passed. if we were to look at san francisco as a bathtub we were trying to fill with housing we might quibble about the mix of housing, rental, low, mod, whatever. but we would all hopefully agree that we better check the stopper at the bottom of the bathroom. there is no point throwing money away on new housing and one way we lose the money, that we lose the housing that we do have is through the conversion to corporate use hotel units. this is a problem that i personally have been hearing about for a good 30 years. from tenants at the golden gateway in particular, and when we looked at a sampling of unit there's from october of last

year, not the whole project, but a sampling of when we found was 13% of the units were rented out to corporate entities. so i think that the stopper needs some work. the apartment conversion ordinance has been around and it seems like we're on the verge of doing that now. i would like to thank supervisors wiener, mar, cohen, hopefully for their support of this and supervisor chiu for his leadership on this issue chamber of commerce and i would also like to thank the coalition for better housing and apartment house owners for their support of this legislate at this time. thank you next speaker.

>> i'm sarah shourd and i think we'll be empowered by this legislation to help enforce these violations that have been occur for years as mitchell just said. one thing that i wanted to share is that we're definitely seeing an increase in tenant complaints and it's very real in term of the our world where renters come in with their housing problems. more and more we're hearing stories where people don't know their neighbors and they feel unsafe because people are coming in and out. and they are watching the turnover happen and they feel very stuck with how to deal with that and why it's happening. and why nobody can seem to do anything about it. and i think we found the answer that although there is a law and we can tell people that, and then you know, there is not very much comfort in that, because then the next thing out

of our mouths is, but it's not really monitored, enforced and there are some tools missing that we really need to do proper enforcement. so this is really commonsense measure, i think. it's simply strengthening a law that we already have. it's already been determined that there is a need for it. we have already agreed that it's a problem and that we want to control this and contain this issue. and this will actually give us, again, the tools that we need to ensure that that happens. i have noticed that no one is here from pharmaceutical or the gap or google or wherever the list that janine had. and i think i haven't heard any opposition generally to this and that is because it would be so brazen to show up here today and say, no, we think it's wrong for you to restrict our ability to make a profit at the expense of san francisco renters. who are holding on to their

homes in this increasingly unaffordable housing market and that is telling. again, i think this is sort of a no-brainer in terms of we are going to lose our families, our low-income renters, immigrants, people that without the rent-controlled units they will simply no longer be living in the city or be living on the streets and of course we'll be putting city money into that money as it comes. thank you very much supervisor chiu for taking the lead of this legislation. >> great. let me ask are there any other members of public who wish to speak? mr. paul? >> good afternoon, supervisors. brad paul, speaking as an individual. and i don't want to repeat what you heard and i want to compliment supervisor chiu on his leadership and just remind us this is part of a larger issue. when with you were debating the twitter payroll tax break, there was a lot of discussion about that. and there are obviously some

good things that came out of that. it's generating new jobs in the city, but you heard the downside that creates more pressure, especially the south of market and tenderloin markets in rents. also noted at the time puts pressure in two ways, one student housing and the other hotelization. thank you to supervisor [wao*-eufrpb/]'s leadership and your support. we did deal with the student housing problem a few weeks ago and today you have an opportunity to vote to end hotelization problem that has been bothering the city since the law passed in 1981. i think some of you already have this, but it's a bay citizen article and what is interesting about it is how it speaks to the economics of this. what it talks about is a woman, i don't give her name, but she goes to the landlord with a business proposition, i will give up a rental if you rent it and gave me 10% and the landlord says and at $225 a night when was a $2100 a month

apartment is now $6700 a month hotel room and she gets $670 a month. furthermore it says he has since turned over a second participant for her to manage as a vacation rental. if you go on the web and type in "short-term rental," you get the golden gateway. if you do the math and rent for ten days, you get $4500 and you if rent for 20 days a month you get $9,000 and if could rent the whole time you would get $13,500. that is a lot more you get renting them out as rental apartments. what you are doing today is really important. it's critical as mitchell said to putting the stopper in the bottom of the bathtub. it's one thing to add a couple hundred units a year, if you are losing units at the same time, we'll never get on top of

this problem. again i want to thank supervisor chiu and all of you for taking it and i hope you support it and send it on to the full board with your support. thank you. >> hi. maim name is tommy with the housing rights committee of san francisco. i have been an affordable housing advocate here in san francisco for about 15 years. 15 long, hard years. advocating for affordable housing is not the easiest thing in the world to do. here in san francisco, it seems to me though that this legislation is a no-brainer. i mean, it's really a no-brainer. i can't believe it's such a huge no-brainer. that we have a piece of legislation that i think most reasonable people would agree with. brad paul was just citing some statistics on how much people are making by hotelization of rent-controlled apartments and you know $13,000 a month? gee, can i get into that racket? i would like to have a little bit of that myself.

$13,000 a month, i could live really well, considering what i makes a non-profit employee. i think the board really does have a choice here between whether or not it's going to allow unbridled greed to continue in san francisco as we have seen it unraveling in the city for a long time. unbridled greed that is really, really out of control and i don't think any reasonable person could not see it's out of control. the kind of profits that people are making off of this. so i think that is the one choice. the other choice is to try to save more of our rent-controlled stock and save more of our apartments for people who live in san francisco and desperately need housing. that is the choice before you and i really [tr-ufrt/] that you are going -- trust you are going to make the right choice. i hope you will pass this onto the board with your support and help us to preserve more housing in san francisco for the people who need it the most, the peop